Discussing Inheritance With Your Family

Written on the 17 October 2024 by Parkside InvestorPlus

Let's talk about a topic that's often swept under the rug but is crucial for every adult: estate planning.

It's not the most cheerful subject, but it's one that can make a world of difference for your loved ones after you're gone.

Picture this: you've spent a lifetime building your legacy - your possessions, your savings, and most importantly, your values.

Now, wouldn't you want to make sure all of that is passed on exactly as you intend?

That's where estate planning comes in, and believe it or not, it's not just about divvying up your assets.

However, here's the issue: most parents and children aren't on the same page when it comes to inheritance expectations.

Surprising, right?

For instance, many kids think that if they've received more financial help from ‘the bank of mum and dad’ during their lifetime, they'll get a bigger slice of the inheritance pie.

But here's the plot twist - most parents plan to split things evenly among their children, regardless of who needed more help along the way.

Now, you might be thinking, "can't I just write a will and call it a day?"

Well, you could but imagine the confusion and potential family drama that could unfold if your wishes aren't clearly communicated.

Also, by having these conversations now, you're not just talking about money and possessions - you're sharing your values and the legacy you want to leave behind.

It's like passing on a piece of yourself, and that's powerful stuff.

So, how do you tackle this tricky topic?

Here are three practical tips to get you started:

1. Take a stroll down memory lane. Think about your own experience with inheritance. Was it smooth sailing or choppy waters? Use those insights to shape how you approach your own estate planning.

2. Ponder your legacy. It's not just about the stuff you leave behind - it's about the message you want to send. What values do you want to pass on? How do you want to be remembered?

3. Plan your talk like a pro. Decide on the when, where, and who of your inheritance chat. Will it be a cozy family gathering or one-on-one conversations? Having a game plan will make you more likely to follow through.

Remember, talking about inheritance isn't just about avoiding misunderstandings - it can actually boost your adult children's well-being and reduce their financial stress during tough times.

Plus, it gives you a chance to share your wisdom and values along with your worldly possessions.

So, while it might feel a bit awkward at first, opening up about your estate plans can be a rewarding experience for everyone involved.

After all, your legacy is about more than just money - it's about the lasting impact you'll have on the people you love most.

If you’re ready for retirement and not sure of your options or if you are a retiree and wanting more positive outcomes in your retirement phase for you and your family, contact us at Parkside InvestorPlus at (02) 9899 4899.